According to Zhitong Finance App News, Mirui Health International (02327) announced that on September 21, 2026 (after the trading period), the company signed an agreement with the seller Yucheng Industrial Co., Ltd., according to which, the seller has agreed to sell, and the company has agreed to acquire sales shares (equivalent to the entire issued share capital of the target company Dexin Pharmaceutical Development Co., Ltd.) through the buyer Meirui Group Development Co., Ltd. (a wholly-owned subsidiary of the company). The total cost was HK$35.2 million.
After completion, the Company will indirectly hold the entire issued share capital of the target company through the buyer. As a result, the target company will become an indirect wholly-owned subsidiary of the Company, and its financial results will be consolidated into the Group's comprehensive financial statements as a result.
As of the date of this announcement, the target company's core asset is the property. It is a Grade A commercial property located in Admiralty, Hong Kong. Admiralty, Hong Kong is the core commercial area of Hong Kong's central business district, with a complete transportation network and close to major financial institutions. The Board believes that Grade A office properties located in prime locations in Hong Kong have shown long-term value preservation and appreciation potential, and that the acquisition provides the Group with a strategic opportunity to strengthen its asset base with high-quality commercial properties. The Group intends to use part of this property as its own office property, which will enable the Group to reduce its ongoing office rental expenses and provide greater operational stability. At the same time, leasing the part-time portion of the property to tenants will provide the Group with a stable and recurring source of rental income. The directors believe that the acquisition is consistent with the Group's current major property investment and leasing business, and will complement the Group's existing property portfolio, thereby enhancing the Group's revenue diversification and long-term profit visibility.
Furthermore, the directors noted that the cost of the acquisition under the agreement was about 43.9% off of HK$35.2 million compared to the cost of the Group's sale of the target company of HK$62.74 million prior to 2020. After considering the current market conditions in the Hong Kong commercial property market and the current valuation of the property, the directors believe that the cost is for the Group to re-acquire the target company and the property at a significant discount from the historical sales price to provide a favorable re-entry price, thus enabling the Group to capture the value of the property on an attractive cost basis.
In view of the above, directors (including independent non-executive directors, but not including (i) Mr. Zhou Xuzhou and (ii) Ms. Zhou Wenchuan (Executive Director and CEO of the Company and contacts of Mr. Zhou Xuzhou), who have waived voting on the board resolution because they have significant interests in the acquisition) believe that the terms of the acquisition are based on normal commercial terms, are fair and reasonable, and conform to the overall interests of the Company and shareholders.